Maplewood Newsletter

Last year, stocks marched higher with only minor pullbacks. When the year ended, the largest peak to trough decline for the S&P 500 Index was just under 3% (St. Louis Federal Reserve data on the S&P 500). It was a year that lacked turbulence and one that rewarded diversified investors.

Since the beginning of February, volatility has returned. It’s a reminder that periods of relative tranquility don’t last forever

Checking in with the markets—priced for perfection

I included one simple paragraph at the end of last month’s newsletter. “By month’s end, a modest bout of volatility re-entered the landscape, as investors took note of an upward creep in Treasury bond yields. It’s a reminder that stocks don’t rise in a straight line.”

While tranquil periods won’t last forever, I will never try to time a peak or trough in the market. Corrections can come suddenly, surprising the most astute market observers. There is no one out there that can consistently call the tops and bottoms in the market, period. A sudden downdraft in shares can be unsettling for some. I understand that. I’ve heard a correction described as being blindfolded on a rollercoaster. You know there’s a bottom, you just can’t see it.